Debt-laden Rebosis in business rescue suspends JSE trading
Rebosis Property Fund has gone into business rescue in which it will implement a turnaround plan in a bid to stay afloat. Reasons cited include:
- Rising interest rates (one of the main issues)
- Inability to recover increased municipal costs from sovereign tenants,
- continuous delay of rental payments by some government departments that account for over half of group revenue,
- the government’s downward pressure on significant reversions upon renewal of leases,
- and the expected time frames within which shareholder approval could reasonably be obtained on disposals.